Foreign investors withdraw from the commercial real estate market of Russia on the background of the crisis in the economy, falling incomes and a reduction in retail sales, which affect retailers and shopping malls.
Preliminary results 2017 shows that foreigners became net sellers of properties in Russia for the first time in 4 years, follows from the data of international consulting company Knight Frank. By November they were taken out of the country more than $ 1 billion.
“At the moment foreign investors are completing deals for the sale in Russia of commercial real estate totaling 1.54 billion dollars, while they have invested three times less – 502 million,” according to Knight Frank.
In 2014, foreigners invested 1.35 billion USD, and sold assets worth 627 million In 2015, respectively, 540 million and 126,5 million, and in 2016 – 466 million and 42.2 million dollars.
The situation is caused by the fact that a number of foreign investors implementing their plans to withdraw from Russia, announced a few years ago, says Director of financial markets and investments at Knight Frank Alan Baloev.
Leaving the country in large companies with significant investment portfolios, he said. This, in particular, the Austrian Immofinanz, which owns shopping centers in Moscow with a total area 278,5 thousand sq. m., Finnish EPI Russia I Ky, its total count 120 thousand square meters, including business centers and Logopark in Saint-Petersburg.
Another “landmark deal” was the complete withdrawal of the Russian market of the German investment Fund Heitman, who now sells office tower in the IFC “metropolis” cost $ 130 million, said Knight Frank.
The number of foreign buyers remains warehouse developer Raven Russia, which acquired in 2017, part of the Logopark “Sever”. Also in 2017, its first investment in the Russian market made an Asian investor Fosun Group, which acquired the business-center “Voentorg” oligarch Dmitry Rybolovlev.
The total volume of investment transactions on the commercial real estate market for the year will amount to about $ 4 billion. This was 7% less than last year.